March 2007FIM Emerging Europe1 Investing in Emerging Europe according to FIM Fonds Professionell Messe, Wien Raoul Konnos, Fund Manager FIM Emerging Europe March 2007

Document Footer2 Introduction of FIM FIM Group FIM Emerging market funds Our investment process

March 2007FIM Emerging Europe3 FIM Group in a nutshell Established in 1987 as a brokerage, asset management since 1994 AUM (Dec. 2006) EUR3,0bn 2006 turnover EUR82m (+30%), EBIT 19m (flat Y/Y), 284 employees Apart from Finland FIM has offices in Stockholm and Moscow Icelandic Glitnir bank made a tender offer on FIM in February 2007

March 2007FIM Emerging Europe4 FIM Emerging markets funds Forerunner in emerging markets fund products in Finland, AUM in emerging market funds total currently EUR750m First Russian fund introduced in Finland (1998) Focus on Eastern Europe (comprising of Russia, Russia Small Cap, Emerging Europe and Ukraine funds) Total of 10 emerging market funds currently, including funds for all BRIC-countries

March 2007FIM Emerging Europe5 This is FIM Emerging Markets Team work Speed from ideas into action Tracking error Small and Mid-Caps Benchmark Company visits Scepticism ESSENTIAL FAST HIGH YES EXISTS VITAL HEALTHY

March 2007FIM Emerging Europe6 FIM EM Investment Strategy CORE HOLDINGS PREFERENCE FOR DOMESTIC PLAYS VS. EXPORT SECTORS* To get local, not global exposure Higher pricing power/profitability Consumption growth Infrastructure investments INTERACTION * Since inception of funds GLOBAL TRENDS Regional generalists  global sector views What sectors will perform, what should be avoided SHORTER/MEDIUM TERM OPPORTUNITIES Global sectors demand/ supply balance Local conditions STOCK SELECTION Company visits, industry analysis Regulation, pricing power, structural changes Valuation, liquidity Management track, strategy WE DO NOT WANT TO EXCLUDE ANY OPPORTUNITIES Case by case analysis rather than mechanical screening Tactical aspects, M&A Small Caps + non-benchmark stocks – keeping in mind the liquidity ACTIVENESS Ability to fast action High individual responsibility rather than consensus committees Dynamic and enthusiastic team open for new ideas SHORTER TERM HOLDINGS

March 2007FIM Emerging Europe7 FIM EM Investment Process COMPANY AND ANALYST MEETINGS IDENTIFY INVESTMENT THEMES IDENTIFY SET OF COMPANIES RANK THE COMPANIES EVALUATE INVESTABILITY RISKS INVEST Market position Valuation Earnings quality/ sustainability The exposure of each sector/ company to the trend Growth dynamics LT pricing power Profit momentum What areas to avoid? Liquidity Corporate governance Timing - short term price development Price impact PARALLEL VALIDITY CHECK/SEARCH FOR NEW IDEAS CHALLENGE INVESTMENT THEMES CHALLENGE THE CON- FIDENCE CHALLENGE RANKING/ VALUATION EXIT/ REPLACE WITH NEW THEMES Still valid? Still significant? Any better ideas? Story coming to an end? Need for sector rotation? Adjust company positions?

Document Footer8 FIM Emerging Europe fund A balanced approach on Emerging Europe

March 2007FIM Emerging Europe9 Fund facts Launch date 4th October 2004 Fund manager Raoul Konnos, since inception Annualised return +32,9% since inception AUM EUR52m (1 March 2007) Investment area: new EU countries and EU applicants Long-only equity fund

March 2007FIM Emerging Europe10 Strong growth outlook in the entire investment area Lähde: ING

March 2007FIM Emerging Europe11 12M forward looking P/E ratios for fund’s main markets and Russia

March 2007FIM Emerging Europe12 Small cap exposure only on selected markets

March 2007FIM Emerging Europe13 Short-term outlook Spring correction has happened every year in last seven years Poland had become the leader among Eastern European countries with regard to nr. of listed companies and share liquidity Turkey will suffer from twin elections this year, although the valuations partly already reflect this The fund focus is on Poland, Romania and the Baltics

March 2007FIM Emerging Europe14 Geographical focus on Poland, the Baltic countries and Balkans

March 2007FIM Emerging Europe15 Sector focus on private consumption demand, including banking, consumer goods and construction

March 2007FIM Emerging Europe16 Fund performance since inception (4 Oct. 2004)

March 2007FIM Emerging Europe17 CV, Raoul Konnos, fund manager 13 years of capital markets experience Joined FIM AM in July 2004 and started FIM EE mutual fund on 4 October 2004 Previous 8 years at premium Nordic broker D. Carnegie (in Helsinki) in various positions (Head of research, Equity research & sales) BBA (University of Stockholm, Sweden), CEFA (Swedish School of Economics, Helsinki)